WRAPUP 3-Esteves quits as head of Brazil's BTG Pactual amid graft probe
(Adds details, bond performance, paragraphs 4-16)
By Guillermo Parra-Bernal and Tatiana Bautzer
SAO PAULO Nov 30 (Reuters) - Brazilian financier André Esteves resigned as chief executive officer and chairman of Grupo BTG Pactual SA late on Sunday after he was jailed as part of a corruption probe rapidly ensnaring Latin America's largest independent investment bank.
Prosecutors are preparing to file charges against the billionaire dealmaker, who they suspect, along with a senator, of trying to obstruct a long-running graft probe at state-controlled Petroleo Brasileiro SA, or Petrobras . Esteves, through his lawyer, has denied the allegations.
In a fresh twist to the near two-year probe, Brazilian newspapers said police found documents allegedly linking BTG Pactual to the payment of bribes to ruling coalition lawmakers.
It is the first time the bank, whose public face has for years been Esteves, was directly implicated in the bribery scandal. Prosecutor General Rodrigo Janot used evidence and testimony from others under investigation to persuade the country's Supreme Court to extend Esteves' detention.
The documents contained information alleging that BTG Pactual paid 45 million reais ($11.7 million) to Eduardo Cunha, speaker of the lower house of Congress, in exchange for the passage of legislation favoring the bank, the newspapers said.
BTG Pactual denied the payments in a statement on Sunday and pledged to cooperate with authorities. A source familiar with the matter said the revelations and the extension of Esteves' detention convinced him and his business partners that he had to resign.